When we overindulged in real estate earlier this decade, we took generous helpings of seconds.
Now the problem for many with too much debt on their plate is how to deal with the mortgage on a second home.When buyers purchase a home that's not their primary residence and ask lenders to qualify them based on expected rental receipts, it's counted as an investment property. If, though, borrowers plan to pay the mortgage out of their own pocket and use the property for their own enjoyment, it's a vacation home.
That's an important distinction because there's "some dispute about whether or not the recently announced government effort allows owners of bona fide vacation homes and some types of rental units to seek a refinance."
Meila discusses what she sees as the four options when dealing with a second home. They are:
- Refinancing
- Selling short
- Working out a modification
- Declaring bankruptcy
Vested Title Inc.
648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com
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